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  • The NZD faded spike to a weekly high of 0.6841 after Powell’s testimony to Congress.
  • The NZD/USD is lacking clear bias, could pick up a strong bid if the spot finds acceptance above the July 9 high of 0.6859.

Currently, the NZD/USD is trading at 0.6780 – largely unchanged on a 24-hour basis.

The spot had rallied to a high of 0.6841 in the Asian session yesterday after the RBNZ’s measure of core inflation printed at a 7-year high.

However, the gains were short-lived as the USD found love after Federal Reserve chair Jerome Powell told legislators the central bank will continue to raise interest rates gradually. ‘

Further, global dairy prices dropped for the fourth time in a row at an auction earlier today, likely adding to the bearish pressure around the NZD.

Consequently, the pair fell back to 0.6767 in the Asian session today, and hence, is trading listless for the fifth consecutive day.

The daily chart below shows the 20-day MA has proved a tough nut to crack this month. So, only a daily close above the 20-day moving average (MA), currently located at 0.68, would allow a sustained rally towards 0.70 (psychological level).

Daily chart

Spot Rate: 0.6778

Daily High: 0.6786

Daily Low: .6767

Trend: Bullish above 20-day MA


R1: 0.68 (20-day MA)

R2: 0.6859 (July 9 high)

R3: 0.69 (upper Bollinger Band)


S1: 0.6767 (Asian session low)

S2: 0.6725 (July 13 low)

S3: 0.6688 (July 3 low)